LATAM in Voluntary Reorganization and Restructuring

May 26, 2020

Cleary Gottlieb is representing LATAM Airlines Group S.A. (LATAM) (NYSE: LTM; SP IPSA: LTM) and its affiliates in Chile, Peru, Colombia, Ecuador, and the United States in the voluntary reorganization and restructuring of their debt under Chapter 11 protection in the United States.

LATAM has secured financial support from two of the group’s largest shareholders, Costa Verde Aeronautica S.A. (the holding company of the Cueto family) and Qatar Airways, which have agreed to provide up to $900 million in debtor-in-possession financing.

Under the Chapter 11 financial reorganization process, LATAM and its affiliates will have the opportunity to resize their operations to the new demand environment, given the effects of COVID-19, and reorganize their balance sheets. The group will continue passenger and cargo operations as conditions permit throughout the process.

LATAM is Latin America’s leading airline group with one of the largest route networks in the world. Cleary previously advised LATAM in September 2019 in its strategic partnership with Delta. As part of the agreement, Delta acquired a 20% stake in LATAM for $1.9 billion.

For more information, please see the press release here.